FirstGen unit going into small-scale LNG distribution

First Gen Corp. said its subsidiary FGEN LNG Corp. was looking at going into small-scale distribution of liquefied natural gas (LNG) within the First Philippine Industrial Park (FPIP) in Batangas province as a stepping stone toward nationwide marketing of fuel brought in through their import fuel terminal.

FGEN LNG expects to start as early as the third quarter of 2022 the operation of the transitional offshore terminal they are building at First Gen Clean Energy Complex (FGCEC).

The company said FGEN LNG had provided for the installation at FGCEC of an LNG truck loading facility that would enable overland transportation of the fuel, especially in areas where development of a gas pipeline was not feasible.

The Lopez-led group believes there is significant opportunity in the Philippines for small-scale LNG distribution, particularly in the many outlying locations and islands where electricity comes from diesel-fired generators.

FGEN LNG is considering a two-step development of small-scale LNG solutions, if this proves to be viable. First at FPIP with a satellite LNG receiving, storage, and regasification facility that would cater to locators in the industrial park and other nearby areas. Second, to other islands in the Philippines using small-scale LNG-carrying vessels.

“We are excited to democratize the use of natural gas in the Philippines using new technology to create small-scale LNG opportunities in the Philippines by taking LNG supplied in bulk in large LNG carriers to the project and delivering it in small quantities to new industrial, commercial and remote customers,” First Gen chief commercial officer Jonathan C. Russel said.

Francis Giles B. Puno, president of FPIP, said existing and potential new locators had expressed interest in using LNG and natural gas for various manufacturing process applications.